Correlation Between Delphax Technologies and FUJIFILM Holdings

Can any of the company-specific risk be diversified away by investing in both Delphax Technologies and FUJIFILM Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Delphax Technologies and FUJIFILM Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Delphax Technologies and FUJIFILM Holdings Corp, you can compare the effects of market volatilities on Delphax Technologies and FUJIFILM Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Delphax Technologies with a short position of FUJIFILM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delphax Technologies and FUJIFILM Holdings.

Diversification Opportunities for Delphax Technologies and FUJIFILM Holdings

-0.72

Correlation Coefficient

Delphax Technologies  FUJIFILM Holdings

Pay attention - limited upside

The 3 months correlation between Delphax and FUJIFILM is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Delphax Technologies and FUJIFILM Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUJIFILM Holdings Corp and Delphax Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Delphax Technologies are associated (or correlated) with FUJIFILM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUJIFILM Holdings Corp has no effect on the direction of Delphax Technologies i.e., Delphax Technologies and FUJIFILM Holdings go up and down completely randomly.

Pair Corralation between Delphax Technologies and FUJIFILM Holdings

If you would invest  5,861  in FUJIFILM Holdings Corp on September 3, 2024 and sell it today you would earn a total of  0.00  from holding FUJIFILM Holdings Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Delphax Technologies  vs.  FUJIFILM Holdings Corp

Delphax Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Delphax Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Delphax Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

FUJIFILM Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FUJIFILM Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, FUJIFILM Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Delphax Technologies and FUJIFILM Holdings

The main advantage of trading using opposite Delphax Technologies and FUJIFILM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delphax Technologies position performs unexpectedly, FUJIFILM Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FUJIFILM Holdings will offset losses from the drop in FUJIFILM Holdings' long position.

The idea behind Delphax Technologies and FUJIFILM Holdings Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.